Retailers slash big-ticket items

Phones, flat-screen TVs, clothes, camcorders and diamond rings are among the goods being heavily discounted in pre-Christmas sales, as retailers battle to end the year on a better note than it began.

But Retailers Association head John Alberton warns that shopowners are being selective about their sales goods, slashing certain items to get customers through the door, but leaving the prices of other products relatively unchanged.

And that means shoppers will get the best deal by doing their research and turning up early.

"Ultimately, there is a fixed amount of money that will be spent at Christmas and everyone is chasing it. Across the whole retail industry things are very competitive. People are offering some very good deals as drawcards but [stores] can't afford to give stuff away," said Alberton.

"My gut feeling is that this year those offers are very targeted with significant activity on a limited range of goods."

Sale goods are already on offer in most shops around the country, with window displays advertising anything up to 70 percent off selected goods. Big-ticket items such as whiteware and TVs costing several thousand dollars have been reduced by up to $600 per item.

The price of clothing and sports goods has also been slashed, many by up to 50 percent. Diamond rings are also down, some discounted by as much as $1500, taking the price on one from $6999 to $5499.

Phones are also cheaper, depending on the call package selected. A Sony Ericsson Blackberry, for example, is down from $1349.95 to $1229.95 provided buyers lock in to a 24-month calling plan.

Last week one Hamilton store was offering a $300 reduction on some camcorders, taking the price to $499.99.

Alberton says the recession has forced retailers to manage inventory carefully, meaning there is less stock in many stores.

Retail analyst Tim Morris of Coriolis market research said shop owners were more conservative in their ordering because they have had an entire year to get used to the tough conditions.

With many goods already discounted, Morris is warning bargain-hunters who intend to wait till Boxing Day to get in early or miss out. "All the good stuff will go quickly."

Alberton says Kiwis traditionally leave their festive buying until the last 10 days, but he is hoping for an increase in spending, based on consumer surveys reporting Kiwis are feeling more optimistic than previously.

"If it's 5 percent up on last year that would be a reasonable outcome. The market was absolutely flat last year."

Morris is less sure that the big spenders will come out, and believes Kiwis are "trading down".

"If they bought a lounge suite previously, now they're buying a flat-screen TV. If they were buying a flat-screen TV, now they're buying a bike. It's the same with wine. People happy to spend $30 on a bottle of wine last year will now only spend $20."

- © Fairfax NZ News